During 2014, Serenity Creek Spa reported a revenue of $21,000. Total expenses for the year was $14,000. Serenity Creek Spa ended the year with total assets of $30,000, and it owed debts totaling $14,000. At end-year 2013, the business reported total assets of $23,000 and total liabilities of $14,000. a. Compute Serenity Creek Spa's net income for 2014. b. Did Serenity Creek Spa's stockholders' equity increase or decrease during 2014? How much?

During 2014, Serenity Creek Spa reported a revenue of $21,000. Total expenses for the year was $14,000. Serenity Creek Spa ended the year with total assets of $30,000, and it owed debts totaling $14,000. At end-year 2013, the business reported total assets of $23,000 and total liabilities of $14,000. a. Compute Serenity Creek Spa's net income for 2014. b. Did Serenity Creek Spa's stockholders' equity increase or decrease during 2014? How much?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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